E-Commerce is Steadily Becoming a Viable Platform for the Cannabis Industry

Over the past several decades, the retail industry has drastically changed due to the development and propagation of e-commerce. Today, many consumers tend to prefer purchasing products online because they can simply browse stores anywhere at the palm of their hands. However, transitioning towards a digital business is not as simple as it seems for certain industries. Specifically, the cannabis industry has faced countless legal barriers that have hindered its expansion into the digital marketplace. For instance, because of cannabis’ legality concern, companies in industries like finance, marketing, and advertising have steered clear. However, as more regions continue to move towards legalization, various industries have become interested in locking into agreements and partnerships with cannabis companies. In particular, the U.S. passed the Farm Bill in 2018, which legalized hemp-derived CBD products. Initially, many companies explicitly noted that they wouldn’t partake in the cannabis industry because of legal concerns. Nonetheless, after the passage of the Farm Bill, large corporations had begun to commercialize and advertise CBD products. And as the cannabis industry continues to expand, it is expected that technology will play a pivotal role in the development of the industry. While brick-and-mortar dispensaries will still be popular in legal regions, digital platforms are projected to further accelerate overall sales. According to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), KushCo Holdings, Inc. (OTC: KSHB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), MariMed Inc. (OTC: MRMD), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY)

The U.S. is primarily limited to the CBD industry since other aspects of cannabis are still federally illegal. On the other hand, Canada has zero restrictions because it completely legalized cannabis in late 2018, joining Uruguay as the only two nations in the world to do so. The legislation has allowed the legal adult-use of both medical and recreational cannabis. Notably, during the first day of legalization, many dispensaries and online platforms experienced shortages throughout the country due to the massive amount of consumers looking to purchase cannabis products. In efforts to provide consumers with convenience and comfort, some businesses launched delivery options where consumers can order online and then have cannabis products delivered right to their doors. Moving forward, industry experts believe that cannabis will continue to be integrated into mainstream retail as the next waves of legalization take hold. For instance, Canada’s second legalization, which is expected to occur in late 2019, is focused on edibles and beverages. Furthermore, the third wave of legalization is primarily expected to be focused on a variety of products such as shampoos, lotions, and other skincare products. In particular, the third wave is expected to be heavily integrated into mainstream retail operations. “When you think about it, cannabis and e-commerce are a match made in heaven. If you’re at home and looking to pick up some cannabis or cannabis-derived products, would you want to get dressed, trudge down the store, wait in line, and potentially have to talk to strangers to place an order? Or would you rather get your cannabis at the click of a button?” said Joresa Blount, Content Marketing Strategist at Early Growth Financial Services and former writer at Forbes. “As e-commerce continues to redefine retail, convenience will be the determining factor in cannabis consumer preferences.”

Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT) is also listed on the Canadian Securities Exchange under the ticker (CSE: CRFT). Just yesterday the company announced breaking cannabis news that, “Canada’s largest craft cannabis brands organization, announces the acquisition of the brand Roll Model. The brand previously formed the basis for a leading pre-legalization manufacturer and purveyor of premium cannabis pre-rolls based in Vancouver, BC. Through its licensed subsidiary, Medcann Health Products Ltd. (“Medcann”), Pasha expects to be able to have Roll Model pre-rolls on the shelves of preferred licensed retailers by the end of Q4.

“We are thrilled to have Roll Model join our family of legacy brands,” said Patrick Brauckmann, Executive Chairman of Pasha Brands. “Its established reputation for quality and the craft market made this acquisition a must for Pasha, and I’m sure Canadian cannabis consumers will appreciate the craftsmanship behind the brand as much as we do.”

Under its previous owners, the Roll Model brand developed a following and reputation for providing an elevated smoking experience to cannabis consumers by using only the highest quality, lab-tested BC bud, in a well-crafted and convenient pre-rolled format. While pre-rolls are often thought to consist of poor quality “shake” or “trim”, products marked under the Roll Model name have always been produced with premium craft cannabis grown in British Columbia. Pasha expects that its subsidiary Medcann will soon be in a position to manufacture pre-rolled joints using cannabis grown by micro cultivators which have joined Pasha’s network of craft producers.

“Joining the Pasha family means the Roll Model name will continue its mission of providing a premium cannabis experience and reducing stigma for cannabis in the legal market,” said creator John Lee in reaction to the news. “We couldn’t have found a better home for the brand. Pasha is mission-driven to honour and bring prohibition-era people and products to market, and it’s a privilege to be working with such a group.”

Pasha has acquired all of Roll Model’s trademarks, names, and intellectual property, and will re-launch the brand in the Canadian regulated market in the coming months. Already, Roll Model products have been included in several product offering packages presented to provincial wholesalers, including Ontario and British Columbia.

About Pasha Brands – Based in Vancouver, British Columbia, Pasha is a vertically integrated, prohibition-era brand house firmly rooted in BC’s craft cannabis industry, which boasts an international reputation. With proven capabilities in cannabis cultivation, genetic research and development, product processing, and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella.

Pasha and BC Craft are also developing a craft cannabis campus, which is dedicated to bringing craft quality into the newly legal cannabis market in Canada. BC Craft is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market. Pasha’s common shares trade on the CSE under the symbol “CRFT” and on the FSE under the symbol “ZZD”. For more information, please visit www.pashabrands.com.”

KushCo Holdings, Inc. (OTCQX: KSHB) is the premier producer of ancillary products and services to the cannabis and hemp industries. KushCo Holdings, Inc. recently announced the creation of its new Retail Services division. The new business unit will focus on providing comprehensive retail solutions, through strategic partnerships with best-in-class sales agencies, to leading CBD brands. KushCos retail services division will focus on industry education and compliance, as well as building distribution networks of CBD brands across conventional retail channels. With Retail Services experienced leadership optimizing growth opportunities, this division will expand the Companys platform and fuse two industries that have historically operated independent of each other. In his position as Vice President of Retail Services, Ryan Savage will oversee sales agency partnerships, including C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships. In addition, he will manage the expansion of CBD into the retail space across all channels, driving sales through management of brands, brokers and customers to increase distribution and revenue growth. Ryan Savage has spent the past 15 years gaining knowledge of multiple aspects of the consumer packaged goods (CPG) industry. He has worked with many diverse, major retailers including Sprouts, Trader Joes, Target, Amazon, and Kroger, in both a branded and private label capacity.

The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The Green Organic Dutchman Holdings Ltd. recently announced that it had completed its inaugural shipment to the Ontario Cannabis Store, marking the Company’s entrance into Canada’s recreational market. Ontario consumers will soon be able to experience TGOD’s acclaimed Unite Organic dried flower, the Company’s high THC signature strain. “We are thrilled to introduce Unite Organic dried flower to Ontario adult consumers. Launched earlier this year with our Grower’s Circle, Unite Organic was highly praised by medical patients. Our small pilot confirmed that market demand for premium certified organic cannabis exceeds available supply,” commented Brian Athaide, Chief Executive Officer of TGOD. “Today’s milestone gets us one step closer to achieving our vision of becoming the world’s leading brand for premium certified organic cannabis in both medical and recreational segments. We look forward to continuing to expand our distribution network as we ramp up production in the months ahead.”

MariMed Inc. (OTCQX: MRMD), a multi-state cannabis operator, is dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products. MariMed Inc. recently received a special permit to allow its Panacea Wellness™ dispensary in Middleborough to merchandise cannabis products under the Massachusetts adult use program. It will now proceed at the Cannabis Control Commission (CCC) for adult use final approval. Panacea Wellness has worked with the Town of Middleborough to secure all necessary approvals, and has received the approval of the town’s planning board, board of selectman, and fire and police departments. The town is allowing up to only four cannabis dispensary permits, with Panacea Wellness expected to be the first. MariMed has permits for two additional Panacea Wellness dispensaries in Massachusetts that are also under development. “This special permit brings Panacea Wellness another important step closer to participating in Massachusetts’s adult-use cannabis program,” said MariMed Chief Operating Officer, Tim Shaw, “and keeps us on track to becoming the first company to provide top-quality cannabis medicines to the residents of Middleborough and the surrounding area.”

Auxly Cannabis Group Inc. (OTCQX: CBWTF) (TSX-V: XLY) is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly Cannabis Group Inc. recently announced that it has entered into a hemp cultivation and purchase agreement (the “Agreement”) pursuant to which the Company has agreed to act as the financial sponsor for the development of a hemp farming co-operative consisting of six individual hemp licence holders pursuant to the Cannabis Act (collectively, the “Hemp Farmers”) located in Prince Edward Island. To date, the Company has funded USD 4.5 Million of the approximately USD 6 Million it will advance and the Hemp Farmers have planted nearly 300 acres of hemp, which is expected to result in approximately 100,000 kilograms of hemp biomass. Pursuant to the Agreement, Auxly’s wholly owned subsidiary, Dosecann Inc. (“Dosecann”), is entitled to purchase all of the hemp cultivated by the Hemp Farmers in 2019 at a preferential price relative to current wholesale market rates; the funds advanced by Auxly toward the development of the project will act as pre-payment for any future hemp purchases by Dosecann. The Company expects the initial hemp harvesting to commence later this fall, at which point the hemp will be tested, milled and stored pursuant to Dosecann specifications prior to delivery to Dosecann for extraction and manufacturing into final finished products. “We are very excited to partner with experienced farmers in the province of PEI,” said Hugo Alves, President of Auxly. “I’m proud of our Dosecann team for finding this opportunity and being able to demonstrate our continued support for Atlantic Canada. This project ensures our ability to meet the growing market demand for wellness and adult-use cannabidiol (CBD)-based products, and enhances our commitment to bringing innovative, branded derivative cannabis products to Canadian consumers.”

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